The Shareholder Spring does not seem to have drifted down to the Club Med countries.
Here’s a company whose revenues, according to ICInsights, dropped 21% between Q1 this year and Q1 last year in a flat market, whose share price has halved in the last twelve months and whose revenue run-rate is back to where it was seven years ago when the CEO took over.
And what happens? The CEO gets a $1.5 million bonus.
You’d have to laugh if it weren’t that this is a company propped up every year by the injection of several hundred million of the taxpayers’ Euros.
And who is the CEO with the chutzpah to accept a $1.5 million bonus after such a performance?
None other than Carlo Bozotti CEO of STMicroelectronics.
According to Bloomberg Businessweek, Bozotti got total cash remuneration for 2011 of $3.9 million made up of $1 million in salary, $1.5 million in bonus and $1.4 million in ‘other compensation’.
Can this be shrugged off in the Gallic manner?
Or should shareholders ask Bozotti how he justifies hanging onto a $1.5 million bonus after such a bad year?